Coconut Grove Condo News and Market Trends for 2018

February 15, 2018

The Coconut Grove Condo Market in 2017 and Our Expectations for 2018!

The Coconut Grove condo market is arguably the best performing condo market in Miami. Where other areas saw an enormous decline in the condo absorption rates, resulting in decreasing prices, Coconut Grove condos performed much better. With only a limited amount of condos in this unique and upscale Miami neighborhood the supply is easily absorbed by the demand. While neighboring Brickell is seeing an oversupply, Coconut Grove is still in the expansion phase of the real estate cycle. With rising demand and limited supply, the market is now announcing a few brand new condo projects. As market analysts and top producers, the David Siddons Group decided to examine the Coconut Grove condo market in further detail.

Prices and Price Changes in the Coconut Grove Condo Market

* Click on image to enlarge *

In the table and graph above we provide you with the sales prices per SF for Coconut Grove condos in 2017 and we compare these prices with previous years. The Coconut Grove condo market can be divided into the smaller, more dated condo buildings that are located on dry lots, without any water views and the more luxurious waterfront condos located on South Bayshore Drive. For this reason we provide the sales data for all of Coconut Grove’s condos as well as for the most desired luxury condos along S Bayshore Drive.

For the entire Coconut Grove condo market we have recorded price increases and decreases over the last few year with the most corrections in the lower-end of the market. The higher-end of the market has seen a surge in prices per SF mainly driven by the delivery of some brand new ultra-luxury condos that have brought new levels of luxury to Coconut Grove. We added trend lines in the graph to show you the general price trends over the years. The Grove, like other markets, has experienced some price corrections to stabilize the market as buyers became more price conscious than before, but the overall trend (see trend lines) shows a steady increase.

The graph and the table below indicate the months of inventory and this might be the most important indicator in the real estate industry. Months of inventory show you the supply and demand relationship, which is key in predicting future price changes. As you can see from the tables, the Coconut Grove condo market is seeing very low numbers of inventory. The market is pre-dominantly a sellers market, while the most luxurious condos are experiencing a buyers market.

What does sellers or buyers market mean?

A sellers market (With 6 or less months of inventory – and 12 or less months in the Luxury $1M+ market) means that there is more demand than supply, mostly leading to an increase in prices and providing sellers with an advantage.

A buyers market (With 9 or more months of inventory – and 18 or less months in the Luxury $1M+ market) means that there is more supply than demand. Prices are likely to decrease in order to absorb the supply.

A neutral market provides for a perfect balance in which neither party has an advantage and prices are likely to remain stable

Prices and Price Changes for Coconut Grove’s most Desired Condos

In the table below we provide you with the sales prices per SF for Coconut Grove’s most desired condos. These are mainly located along the waters of the South Bayshore strip. Please take note of the comment below the table, some of these condos see a limited amount of yearly sales, which leads to considerable shifts in prices from one year to the other.

Price Range Distribution for Coconut Grove Condos

Like everywhere in Miami, the Coconut Grove condo market below the $500K marker is decreasing while the luxury market is gaining momemtum. Striking is the $1M – $2M market being low in active listings as well as sales in general. We have already mentioned last year that we saw a market gap for this price range. There is a great amount of older, more affordable units on the market and very high-end units, while the $1M market is seeing a demand yet no supply. These days we see developers starting to provide for the $1M+ range

Advise for Buyers of Coconut Grove Condos in 2018

We are very bullish about the Coconut Grove condo market. With a limited amount of months of inventory, prices are most likely to increase. The Grove is a very unique and desired neighborhood in Miami with limited condo supply. Regardless of the positive market outlook, buyers still need to be cautious and make sure they do not overpay. Especially in the luxury-end of the market, one needs to be careful with the prices of pre-construction condos. Given the numbers, I am very bullish on investing in the $1M – $2M price range. There is a demand for these condos, but limited supply.

Whatever you do, always compare projects and their values. You can contact me to discuss the difference Coconut Grove condos for sale and to compare prices and values of all the Coconut Grove condos. I am a market analyst who does a great amount of deals in the Grove and I know this market and its numbers like nobody else.

Advise for Sellers of Coconut Grove Condos in 2018

Coconut Grove condo owners can get top dollar for good quality units. The demand for Grove units is high and inventory is limited. Today’s buyers are still price conscious meaning that if you want to sell, you have to price at market value and do not try to get extreme high prices. The $1M – $2M range sees a shortage in condos and therefore quality condos in this price range are very desired. The ultra-luxury market is seeing some competition from the just finished Grove at Grand Bay and projects under construction like Park Grove, the Fairchild and the Markers. As many buyers prefer the brand new luxury projects, it is essential to price your unit right. If you are looking to sell your Coconut Grove condo, please contact me today for a Comparative Market Analysis!

David Siddons is a top producing Coconut Grove real estate agent with over $65M in yearly sales. He is known as a market analyst and a top marketeer. Contact David Siddons today to discuss the Coconut Grove real estate market

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He lives with his wife and 2 daughters in Coral Gables with his office located centrally in Brickell. Originally from the UK, his natural discipline and work horse ethic is well suited to his passion for testing sports .
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